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Antelope Valley Community College District
Budget Update
Presented By: Mazie L. Brewington
Vice President of Administrative Services
Welcome Back
August 16, 2013
Outline
1. 2012-13 Unrestricted Estimates
2. Education Protection Account Funds
3. 2013-2014 Opportunities
4. 2013-2014 Draft Adopted Budget
5. 2013-2014 Risks
6. Outlook 2014-2015
2012-13 Unrestricted General Fund
Unaudited Actuals
Beginning Balance
$ 7,456,314
Revenues
$58,174,686*
Expenditures
$56,182,338
Ending Fund Balance
$ 9,448,665
Surplus/(Deficit)
$ 1,992,348
Reserve %
Funded FTES Base
16.8%
10,619**
*Assumes a 1% revenue shortfall on apportionment and a recalculation deficit for receiving more PTAX and
Enrollment fees in 2012-2013 than projected by the Chancellor’s Office. Total deficit estimate is $642,576.
**Includes 108 borrowed FTES in order to meet base
Education Protection Account (EPA)
•
Proposition 30 was passed in November 2012, which established the EPA account.
•
LEAs have the sole authority to determine how the funds will be spent; however,
there are accountability provisions:
1. The spending plan must be approved by the governing board during a public
meeting, which will be held June of each year.
2. EPA funds cannot be used for the salaries and benefits of administrators or any
other administrative costs (as determined through the account code structure).
3. Each year, the LEA must publish on its website an accounting of how much
money was received from the EPA and how the funds were expended.
•
For 2012-2013, AVC received $8,846,421 AVC by June 30th
•
In future years, it is expected to be paid quarterly, Sept/Dec/Mar/Jun. Sep & Dec will
most likely be based on prior year P2 ADA information, which means it can be
subject to change. This still creates cash flow challenges!
PROP 30 IS TEMPORARY!
2013-14 Opportunities: 2011-2012 Workload
Reduction Eligibility
Reductions That Have Been Implemented
Fiscal
Year
20112012
Initial Workload Reduction
Workload
Apportionment
%
-6.21%
($3,223,949)
Additional Deficit due to $23 mil in base
funding increase from 2009-2010 and 20102011 with no state funding increase (2 new
colleges, several new centers and natural
increases to basic allocation)
($129,285)
Tier 1 Deficit Co-Efficient
Tier 2 Additional Workload Reduction
($309,085)
($741,526)
-1.52%
Student Fee Deficit Co-Efficient/P-Tax
Shortfall
2011-2012 Total Reductions
•
Base
11,371
FTES
New
Base
Head
Count
(706)
10,665
(1,484)
(162)
10,502
(341)
($1,389,460)
-7.74%
($5,793,305)
(869)
(1,825)
Workload eligibility to earn 18% of reduction = 157 additional FTES and $742,895 in additional apportionment
revenue
We are restoring access, not growing!
2013-14 Opportunities: Reduction in Deferrals
2012-2013 spike in deferrals includes $8.9 million in EPA funds not received until June 30th
2013-14 Opportunities: Additional Funds
Statewide Categorical Funding
2012-2013 Allocations
Increase/
(Decrease)
2013-2014 Total
Apprenticeship Training & Instruction
$0
$15,694,000
$15,694,000
Disabled Students
$69,223,000
$15,000,000
$84,223,000
Financial Aid Administration
$71,025,000
($3,488,000)
$67,537,000
Special Services for CalWorks Students
$26,695,000
$7,850,000
$34,545,000
Student Success & Support Program (a.k.a
Matriculation)
$49,183,000
$50,000,000
$99,183,000
Telecommunication & Technology
$15,290,000
$500,000
$15,790,000
Academic Senate for Community Colleges
$318,000
$150,000
$468,000
Instructional Block Grant/Scheduled
Maintenance
$0
$30,000,000
30,000,000
EOPS
$73,605,000
$15,000,000
$88,605,000
Adult Ed
$0
$25,000,000
$25,000,000
Expanding Technology
$0
$16,910,000
$16,910,000
•
•
Instructional Block Grant to AVC
Scheduled Maintenance to AVC
* Based on Advanced Apportionment dated 7/29/2013
$132,341*
$132,338*
2013-14 Draft Adopted Budget Assumptions
• COLA included (1.57%); plus 1% to be negotiated
• No Growth Funding
• 18% of 2011-12 workload reductions or 157 FTES
• Partial restoration of Categorical Programs (DSPS, EOPS, CalWORKS,
Student Success, a.k.a Matriculation)
• $46 per credit unit
• Continued State Deferrals
• 0.5 percent deficit factor included-$282,314
2013-14 Draft Unrestricted Adopted Budget
• Beginning Balance
• Revenues
$9,448,665
$59,199,109
•
•
•
•
$59,082,087
$9,565,682
$117,022
16.19%
Expenditures
Ending Fund Balance
Surplus/(Deficit)
Reserve %
• Base FTES
• Target FTES
• Target LHE
•
10,619
11,096*
11,680
Target FTES includes 2% above base (212 FTES), Plus 2011-2012 workload eligibility (157 FTES)
and borrowed FTES from 2012- 2013 (108 FTES).
2013-14 Risks: RDA Funding & Centers
• 3 Centers approved that are not included in the budget figures.
Potential deficit.
• DOF and Chancellor’s Office disagree on the amounts owed to
California Community College for guaranteed EPA funds backfill in
2012-2013.
• Potential deficit could be over $2 mil or as little as $200K due to
RDA funds.
Outlook 2014-2015
• CCC System Budget Request Includes:
– Schools Services of California states that the statutory COLA is
1.8% or $100 million. CCC requesting $240 Million for a “Super
COLA” or 4.4%
– $150 million for restoration of Categorical Programs
– $110 million for access or 2% restoration in FTES
– $100 million to buy down deferrals
Per Chancellor’s Office Budget Workshop, August 6, 2013
QUESTIONS